Most of you, I am sure, are familiar with the scene in the classic movie Spinal Tap, in which Christopher Guest as Nigel Tufnel utters the immortal words, “These go to 11” about his beloved Marshall Amp.
“It’s one louder,” he intones.
As foolish as Nigel appears, he is making an important philosophical point. He is seeking the maximum total benefit from his amp and for his fans in the audience. In short, he is striving to be efficacious. This desire, to seek the maximum total benefit for a customer, supersedes in my view our desire to be effective – seeking to produce a benefit or result for a customer.
The problem is that if you are focusing on just being effective (seeking a benefit/result), there could be a perception on the part of a customer and temptation on the part of a consultant to see fixed price agreements as a way to maximize your profit and not on your customer’s profit. Focusing on efficacy (seeking maximum total benefit) removes this perception and temptation.
Therefore, I humbly submit a change to the PKF (professional knowledge firm) new business model equation:
Profitability = Intellectual capital X Price X Efficaciousness
As an aside to those of you still mired in the efficiency v. effectiveness debate: you are now behind by two generations in thinking!
Even among the VeraSage zealots, I am sure that there are those of you who believe I am taking this debate of semantics to the nth degree. I am, but I am just being efficacious.